Cash in a flash

The Royal Bank of Scotland is to permanently withdraw credit-card cheques weeks before the government is due to make an announcement on its inquiry into the product.

The bank is one of 11 issuers of credit-card cheques - others include MBNA, Capital One, Barclays and HBOS. The cheques can be used to pay bills or buy expensive items within the credit-card account spending limit. However, the banks do not always make it clear to cardholders that they will end up paying higher interest than that on their card.

RBS and Natwest had temporarily suspended issuing credit-card cheques earlier in the year, but have now decided to get rid of them altogether. But other issuers are sending out the cheques unsolicited, raising concerns that issuers are encouraging people to borrow. Website Uswitch.com says that 51 per cent of the cardholders it surveyed had been sent credit-card cheques by their provider.

'There is never a good reason to use credit-card cheques,' said Mike Naylor of consumer campaigning body Which? 'Not only are they more expensive to use than credit cards, but they come with no interest-free period so you are charged interest from the day of purchase, and they also don't give buyers the protection credit cards do.'

Under the Consumer Credit Act anyone who buys goods or services worth over £100 with their card can make a claim directly against their credit-card company if they discover problems with their purchases - but this does not apply if bought with credit-card cheques.

The Association of Payment and Clearing Services said last week that it was launching a credit-card cheque summary box to accompany all credit-card cheques sent out in the UK by the end of the year.

No penalty mortgage: too good to be true?

Lloyds TSB has launched a mortgage that allows borrowers to make overpayments, pay off loans early or change the length of a loan without paying any fees.

The Easy Living mortgage is a discounted deal at 1 per cent below the bank's standard variable rate for life on loans up to 90 per cent of the value of the property - giving it a current rate of 5.75 per cent - or at 0.5 per cent discount for a 95 per cent loan. This gives a current rate of 6.25 per cent.

The bank is hoping that its 'fee free' deal will attract customers who are fed up of having to pay hefty entry and exit fees to take out a loan or to remortgage. 'A deal that looks attractive today may end up costing homeowners more than they thought two or three years down the line when they need to rearrange their mortgage,' said John Pain, managing director of Lloyds TSB Mortgages.

However, brokers are more sceptical abut the deal. 'There are mortgages with much lower rates and similar benefits available from rival lenders and these offer far better value for money,' said Nick Gardner, director of Chase de Vere, who points to a long-term tracker from Woolwich at 0.19 per cent over base rate for life, giving a current rate of 4.94 per cent. The loan has no arrangement fee and no early repayment charges and offers free valuation and legal work on remortgages. Based on a £100,000 mortgage over 25 years, borrowers would pay a total of £74,330 in interest with the Woolwich. A borrower with the same size mortgage with Lloyds would pay £88,732 in interest over this period.

Official: money can buy you love

Women regard a healthy bank balance as more important than good looks and home ownership in a potential partner, according to a survey from National Savings & Investments

British men need to be earning at least £50,000 a year before a woman would consider them successful and wealthy, say NS&I. Men's expectations are lower. Those males looking to set up home with a high-achiever with money would consider any woman who is earning more than £42,000.

And apparently it's not just salary but savings that matter. Women expect their other half to have an average of £24,281 put away for a rainy day, while men are happy with savings of £15,143 among women.

Just over half the population are on their way to a monied romance it seems. Fifty-four per cent are saving regularly, at an average of £174.50 a month.